This presentation examines the multitude of disruptive technologies that are destroying some CPA's clients' traditional business models. Trusted advisors need understanding of the threats and be ready to help your clients. You'll be amazed (and probably troubled) as we discuss today's buggy whip manufacturers.

1. presented by
Gregory L. LaFollette, CPA.CITP, CGMA
Strategic Advisor
Disruptive Technologies
Catch the Wave

2. Gregory L. LaFollette, CPA, CITP, CGMA
Semi-retired Vice President of product strategy – CPA2Biz
Now ―Strategic Advisor‖
Author, Speaker, Thought-leader,
Accounting Technology Hall of Fame Member
Prior
• Eide Bailly, LLP – Senior Manager, Tax and Technology Consulting
• LaFollette Consulting, LLP -- Consultant to the industry
• The CPA Practice Advisor -- Executive Editor
• Thomson Reuters (Creative Solutions) – VP - Product Strategy
• LaFollette, Jansa, Brandt & Co. , LLP -- Tax & Technology partner
• AICPA Committees
• CITP Credential Committee – Chair (7 years; Member 4, Chair 3)
• Journal of Accountancy – Technology Advisory Board
• TECH+/Practitioners Conference -- Planning Committee (6 years)
• National Accreditation Commission – ad hoc (3 years)
• National Tax Education Program (AICPA/UI) -- Graduate and former Staff
Lecturer (12 years)
• Top 10 Technology Initiatives -- Review Committee (5 years)
• Microcomputer Advisory Services Committee (3 years)

3. Who We Are
Disruption & CPA’s
Significant Areas of Change
Agenda

4. Who we Are

5. About CPA2Biz
 AICPA subsidiary, Formed in 2001
 Markets all AICPA products and services, manages AICPA affinity programs,
manages AICPA web properties and leads key AICPA technology initiatives
 AICPA Store (www.cpa2biz.com) is ranked by Internet Retailer as one of the
Top 500 e-commerce sites in the US.
 Built one of the leading distribution channels to the profession through its
Trusted Business Advisor Solutions program—a portfolio of web-based
solutions, training, resources, and alliance programs transforming the CPA-
client relationship.
 Headquartered in New York, NY with technology and engineering offices in
Santa Clara, CA, sales office in Dexter, MI, and service and support offices in
Durham, NC.

6. Overarching Principle
We are the leader in guiding the profession’s
migration to the cloud through change
management, business process education and
product and service curation.

8. Templosion
tem·plo·sion [tem-sploh-zhuhn] noun

9. It’s a TEMPLOSION
“It’s a VUCA world – Volatile, Uncertain, Complex, and Ambiguous …
the answer to rapid changes and hyper-competition is a bold vision and
core values; maintaining values that don’t change while constantly re-
inventing the shorter term strategy.”
Tom Hood, CPA.CITP
Ex. Dir – Maryland CPA Society
“I like Tom Hood’s VUCA to define the paradox. Rapid, short-term
change and long-term leadership ideas and goals simply don’t mesh
well.”
Hubert Glover
Author: The Making of the Twenty-First-Century Leader

10. It’s a TEMPLOSION
“It’s a VUCA world – Volatile, Uncertain, Complex, and Ambiguous
… the answer to rapid changes and hyper-competition is a bold vision
and core values; maintaining values that don’t change while constantly
re-inventing the shorter term strategy.”
Tom Hood, CPA.CITP
Ex. Dir – Maryland CPA Society
“I like Tom Hood’s VUCA term to define the paradox. Rapid, short-term
change and long-term leadership ideas and goals simply don’t
mesh well.”
Hubert Glover
Author: The Making of the Twenty-First-Century Leader

11. A Note on Predictions
“It's tough to make predictions, especially
about the future.” ― Yogi Berra

12. Our near term
view is always
unclear.
• “Inside the
Tornado”
• “Tipping Point”,
• “Crossing the
Chasm”

13. My overlay from 1993

14. Disintermediation

15. Disintermediation
Removing the middleman -- a popular
buzzword used to describe how Internet-based
businesses are using cloud and mobile
technologies to reach customers.
These companies provide products and
services cheaper and faster.
These technologies are revolutionizing the way
products and services are bought and sold,
and disintermediation is the driving force
behind this revolution.

16. Trends to Discuss

17. Some Trends to Discuss
1. Cloud Storage
2. Broadcast TV / Cable TV
3. 3D Printing
4. Peer-to-peer lending
5. Restaurants
6. Hotels / lodging
7. Cars

18. Cloud Storage

19. Dropbox™
What It Is:
Online document, image, and
video storage
What It Does:
Lets you bring your photos, docs,
and videos anywhere and share
them easily.

20. Dropbox™
How You Might Use It:
• Store important documents
online for easy access.
• Collaborate with others for
edits and updates.
• Share private documents.
• Store and view property
photos.

21. Dropbox

22. Dropbox
Dropbox
Website
SD Office
Desktop
MacBook
Air
Home
Office
MacBook
Pro
NY Office
Desktop
iPad
Galaxy 4
All
Files
Some
Files

23. Dropbox™
Learn more: www.dropbox.com
Platforms: iPhone®, iPad ®,
Android™, Blackberry®, Kindle
Fire®

25. Multi-factor authentication
Who you are (biometrics)
What you know (user ID, passwords)
What you have (dongle / phone)
To enable Dropbox two-step verification
1. Click Settings > Security tab
2. Account > Two-step verification > Enable
3. Enable two-step verification
4. For security reasons, you'll be asked to re-
enter your password. Then you'll be given the
choice to receive your security code by text
message or to use a mobile app.
5. After enabling the feature, consider adding a
second phone number as well. If you ever
lose your primary phone, you'll be able to
receive a backup security code to that
number instead.

26. Password Technique
• Select and memorize an 8 character nonsense string
including upper and lower case letters, numerals, and
symbols.
• Example: qh^64Tp%
• Select 2 ―spots‖ within that string (example: # 3 and #7)
• Example: qhX^64XTp%
• Select 2 ―spots‖ within the name of the website or service
you’re registering (example: # 1 and # 3)
• Example 1: wellsfargo.com = wellsFargo
• Example 2: cchgroup.com = cchgroup
• Insert the website characters into your password
• Example 1: qhw^64lTp%
• Example 2: qhc^64hTp%

27. Result

28. Password Management Tools
• Keeper
• Dashlane
• LastPass
• oneSafe
• SplashID Safe
• Norton Identity Safe
• Password Genie
• Roboform
• Ilium eWallet

29. Television

30. Say Good-bye to Cable TV

31. Barry Diller’s Aereo TV

32. Barry Diller’s Aereo TV
$8 / month for CBS, NBC, ABC, FOX, PBS
>150,000 subscribers in NYC
Sold out in Atlanta
Directly to Supreme Court on April 22

33. • First in was all fun and games
• Then it started to get serious
• Graphene will take it to the next level
• Already printing houses -- Contour Craftings prints
2,500 Square-Foot-Homes in 20 hours
• And some airplane parts!
3D Printing

34. Graphene
• Graphene is amazing!
• Made from a layer of carbon one-atom thick
• Strongest material in the world
• Completely flexible
• More conductive than copper
• Desalinizes sea water WHILE generating electricity!
• Will eventually replace silicon

36. MakerBot
Replicator Mini -- $1,375
$949

37. XYZprinting
Davinci 1 -- $499
Forecast World wide sales >
2.2M

38. Projections for 3D Printing
• Significant patent expirations in mid-2014
• Chinese manufacturers involved
• Technology has reached “tipping point”
• Compare to laser printers
• HP 2 sold for $3,995 in 1985
• Now available for >$100 (overpriced ink)
• 3D printers sold for $14,000 only 5 years ago
• Now available for >$400 (overpriced material @ ~$25 per pound)
• Explosive growth from here on out
• How does this impact YOUR clients?

39. Peer Lending
Technology is the easy part
• Kiva (non-profit)
• > 1 million lenders
• > $500,000,000 in loans
• 99.01% Repayment rate
• KickStarter (friends and family)
• Regulation and litigation
• Prosper (Wells Fargo execs)
• >$1 billion in loan originations to date
• LendingClub (technology execs)
• Loans being funded @ > $250M / month
• Interest paid to investors: ~$500M to date
• Kabbage (technology & banking)
• Direct ties to cloud-based accounting platforms

40. Crowdfunding Grows Up
• 2012‟s JOBS Act, allows companies to raise up to $1 million in a
12-month period
• From ―accredited investors”
• Income over $200,000 (single) or $300,000 (joint) per year
• or net worth over $1 million
• An executive or director of the company
• Under $100,000 requires two years of financial statements, certified
by the principal executive, and its most recent tax return.
• From $100,000 to $500,000 the statements must be reviewed by a
CPA.
• Over $500,000 must have audited statements

41. What it means
• Role of banks?
• Role of CPA’s as credit advisors?
• Financial statements?
• Benchmarking and analysis?
• Personal investments?

42. Disruptive
Technologies

43. Transparency
Provider
CustomerTechnology

44. Disruptive Technologies

45. GrubHub /
Seamless®
What It Is:
Food delivery service
What It Does:
Aggregates menus of restaurants
that provide delivery service to
your specific location. Automates
ordering and payment functions.

46. How You Might Use It:
• Order food delivery at your
home, office, or hotel.
• See each restaurants‟ menu
and customer ratings.
• Limits errors in ordering,
address, etc.
• Centralizes credit card
payment so there‟s no more
fumbling at delivery time.
GrubHub /
Seamless®

47. Learn more: www.seamless.com
Platforms: iPhone®, iPad®,
Windows®, Android ™, Web app
Cost: Free
GrubHub /
Seamless®
25,000 participating restaurants
130,000 meals per day
3% rake

48. DISRUPTION:
Sit-down restaurants
OPPORTUNITY:
Del-co food outlets
Services for “nesters”
GrubHub /
Seamless®

49. AirBnB®
What It Is:
Short term room rental founded in
2008 as “couch surfing”
What It Does:
Provides intermediary service
between “hosted” apartments,
rooms, B & B‟s, etc. and patrons
wishing to rent them.

50. AirBnB®
Current VC value!

51. How You Might Use It:
• Host extra space, vacation
home, apartments, etc.
• Rent space almost anywhere
in the world.
• See each property‟s photos
and customer ratings.
• Limits errors in reservations
dates, address, etc.
• Centralizes credit card
payment so there‟s no more
fumbling at arrival time.
AirBnB®

52. Learn more: www.airbnb.com
Platforms: iPhone®, iPad®,
Blackberry®, Windows®,
Android ™, Web app
Cost: Free
AirBnB®

53. AirBnB®
DISRUPTION:
Traditional hoteliers
Municipal tax collectors
OPPORTUNITY:
Micro-landlords
Travelers

54. Cars

55. So what changes?
• First – rental cars
• Started with ZipCar – sold to Avis/Budget
• Then GroundLink for limos
• Now the taxi and limo business
• Next – autonomous cars

56. Uber®
What It Is:
Car and taxi service
What It Does:
Provides intermediary
service between car and
taxi owners / operators
and patrons wishing to
utilize them.

57. Why Use It:
• Almost-on-demand black car or
taxi service.
• Cheaper than traditional black
car service.
• See each car‟s exact location
description and customer rating.
• Limits errors in timing, address,
etc.
• Centralizes credit card payment
so there‟s no more fumbling at
drop-off time.
Uber®

58. Learn more: www.uber.com
Platforms: iPhone®, iPad®,
Blackberry®, Windows®,
Android ™
Cost: Free
Uber®

59. And here comes the competition!

60. Uber®
DISRUPTION:
Existing taxi / limo companies
Municipal tax collectors
OPPORTUNITY:
Part time drivers (Google financed)
Travelers
Delivery services
LONG-TERM IMPACT
Number of cars required
Parking lots
Autonomous cars?

61. Enter Google

62. Driverless Cars
• We already have ―assisted‖ driving
• Auto parking
• Lane monitoring
• Adaptive cruise
• Emergency braking
• Autonomous cars in our lifetime?
• BMW
• Audi
• GM
• Ford
• Mercedes Benz
• Volvo
• Nissan
• Ford
• Chrysler
• Hyundai

63. • Nevada, California, Florida, Michigan and Washington
DC now allow licensing and operating autonomous
vehicles on public roads.
• Google Ventures just make its largest investment ever --
$285M in Uber (valuing Uber at $3.75B)
• Google says its designing Its own self-driving car for use
as a „Robo Taxi‟
• Technology is the easy part
• Legislation and litigation are challenges
Driverless Cars

64. 1. Technology enables
massive competition
2. Centralized regulation
disappears
3. Fewer cars?
4. Fewer parking lots
5. Less congestion
6. Better safety
7. More productive time
So what changes?
8. Cost of trucking falls –
logistics become cheaper
9. Fewer hotels?
10.Fewer full time jobs / more
part time?
11.On demand delivery
becomes standard – fewer
bicycle messengers
12.Surge availability

65. Thank You!!!